Islamic banking to offer alternative financial solutions in Africa

Dar es Salaam. Africa is emerging for Islamic Finance and a new destination for Islamic Financial Institutions something that analysts say will open up new avenue for the Foreign Direct Investment (FDI).

AlHuda Centre of Islamic Banking and Economics (CIBE), chief executive officer Muhammad Mughal was speaking at the inaugural ceremony of African Islamic Banking and Takaful Summit saying that Tanzania’s Islamic Banking and Takaful market is promising.

He said that Islamic banking and finance is the ultimate financial solution due to its viability and sustainability.

 The system he said has multi-fold benefits which concentrate on the balanced wealth distribution. He also threw light on the need for Islamic banking and financial services.

“Several new Islamic financial institutions are ready to start their operations in the market. Various Islamic window operations are also going to start their operations for the development of the economy to strengthen the growth of the market and to uplift the living standards of the public in the region,” he said.

According to him, a number of banks are also coming into the markets with stand-alone branches for Islamic banking operation. Insurance industry is also participating with zeal and zest and Takaful operations are also going to be operated in the insurance market.

Officiating the event, Bank of Tanzania, former deputy governor Mr Mohamed Mbaye recommended Alhuda CIBE activities for the development of Islamic banking and finance in Africa and especially in Tanzania.

He said that Tanzania and Africa have enriched the future for Islamic banking and finance and many banks are already dealing with Islamic banking products in the country and the region.

“AlHuda CIBE is playing its role in the promotion of a globally accepted alternative financial solution which is the only hope of financial stability,” he said.

They also mentioned that there is absence of a specific legal and regulatory framework to govern the Islamic finance industry which should be addressed.

The summit was held in association with the Centre for Islamic Finance, Compliance sponsored by Imaan Finance, CRDB Bank, PBZ Bank LTD, Craft Silicon, Technology Associates, Tanzania, Zanzibar Insurance Corporation, InvoiceMate, BSV-Blockchain.

Others include Association of Tanzania Insurers (ATI), Tanzania, National Insurance Authority, Somaliland, NBC, Imaan Newspaper, Imaan Radio, Imaan TV and Ifing- Media